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Third Edition of Policy Brief Reveals Increasing Gains in Co-op Fiber Deployment

Originally published in 2017, our report, Cooperatives Fiberize Rural America: A Trusted Model for the Internet Era, focuses on cooperatives as a proven model for deploying fiber optic Internet access across the country, especially in rural areas. An update in the spring of 2019 included additional information about the rate at which co-ops are expanding Internet service. Now we’ve updated the report with a new map and personal stories from areas where co-ops have drastically impacted local life.

Download the updated report [PDF] here.

All versions of the report can be accessed from the Reports Archive for this report.

Some highlights from the third edition of Cooperatives Fiberize Rural America include:

  • More than 110 rural electric co-ops have embarked on fiber optic projects to increase Internet access for their members, a number that is growing rapidly from just a handful in 2012.
  • 31.3 percent of the fiber service available in rural areas is provided by rural cooperatives.
  • Personal anecdotes from Michigan, Virginia, Minnesota, and Missouri residents attest to the far-reaching benefits of cooperatives’ expansion into Internet service.
  • A new map shows where rural cooperatives are planning to expand fiber Internet service.

Co-ops have proven that this is a model that works. With increased support from federal and state governments, they will continue to connect rural Americans to economic and educational opportunities otherwise denied to them. 

Read Cooperatives Fiberize Rural America: A Trusted Model For The Internet Era [PDF] here.

Springfield Expands, CenturyLink Leases, More Connectivity in Missouri

City Utilities (CU) in Springfield, Missouri, recently announced that over the next four years, they will expand the community’s fiber optic network. CenturyLink will lease dark fiber on the Springfield infrastructure in order to offer Fiber-to-the-Home (FTTH) Internet access to residents and businesses in Springfield and in areas beyond the city. In addition to the great news about this sizeable expansion, experts feel optimistic to see a national ISP working with a pioneering municipal network.

Working with CenturyLink First, Then Others

CU will spend around $120 million to add more than 1,000 fiber miles to their existing 700-mile fiber infrastructure. SpringNet has provided connectivity to local businesses since the late 1990s and has helped spur economic development in Springfield.

CenturyLink, as the first Internet access provider to lease dark fiber on the publicly owned network, and Springfield expect to begin connecting residents and businesses by the spring of 2020. According to CU General Manager Scott Miller, the 15-year arrangement with CenturyLink will fund much of the expansion and rates will not increase for current CU customers.

Miller estimates that CU will complete the expansion within three years. Because the CenturyLink agreement is not exclusive, CU hopes to lease excess capacity to other Internet access companies or businesses. In addition to encouraging options for Springfield, CU wants to deploy more fiber throughout the community to facilitate 5G technology, which requires ample fiber to support high numbers of small cell sites.

Pemiscot-Dunklin Electric Cooperative Steps Up, Offers FTTH in Missouri's Bootheel - Community Broadband Bits Podcast 344

Missouri is one of the states where electric cooperatives are taking the lead in bringing high-quality Internet access to rural areas. This week, we talk with Jack Davis, Vice President of IT and Special Projects at Pemiscot-Dunklin Electric Cooperative. The co-op is in the midst of deploying Fiber-to-the-Home (FTTH) to members in their service area, located in Missouri’s “Bootheel” region.

The mostly agricultural area consists of three counties that extend down from the southeast corner of Missouri and is surrounded by Arkansas, Tennessee, and Kentucky. The co-op brought electric service to homes in the region in the 1930s and Jack and his colleagues are performing a similar service today by bringing broadband to a region where large corporate ISPs haven't invested much in infrastructure. In this interview, he describes what Internet access is like for people in the region before the cooperative decided on the project, and how strong support from residents and businesses has helped the cooperative determine the services to offer.

Jack and Christopher also discuss how the geography and environment influenced engineering and design plans, how locals are responding to the new service, and potential plans for growth in the region. In this conversation, you’ll also hear about some of the partnerships that Pemiscot-Dunklin has forged with other cooperatives in order to offer better services to cooperative members.

This show is 26 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed

Transcript below. 

We want your feedback and suggestions for the show-please e-mail us or leave a comment below.

Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.

Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.

Broadband in the Bootheel: Missouri Electric Co-op Delivers

Missouri’s Bootheel is the ultimate southeast corner of the state, extending south and surrounded on three sides by lands in Arkansas, Tennessee, and a smattering of Kentucky. The area’s known for having fertile soil and vibrant agriculture but now that Pemiscot-Dunklin Electric Cooperative  is deploying Fiber-to-the-Home (FTTH), it's also becoming known for high-quality Internet access.

The Region and Lack of Connectivity

Jack Davis has worked in several fields. His tech career started when most people in the area reached the Internet via dial-up connections; at the time he worked as a network administrator for a local dial-up ISP in the 1990s. His second career was in agriculture and now he’s back in the tech field. Davis’s multiple work experiences have given him insight into the increasing broadband needs of rural residents who either farm or work in some other aspect of the agriculture industry.

When Davis went back into tech, he joined Pemiscot-Dunklin because the electric cooperative, which had never had IT staff before, needed to fill a long-existing personnel gap. With approximately 8,800 connected meters, the cooperative is a modest-sized organization. Approximately 20 percent of their load goes toward irrigation, revealing the important role agriculture plays in the region. Internet access in rural areas is limited to fixed wireless. Cooperative members who used to subscribe to the wireless service typically found top speeds were around 3 - 4 Megabits per second (Mbps) download and much slower upload speeds.

Time for an Upgrade

Ralls County Electric Cooperative Bringing Fiber to Perry, Missouri

In Missouri, rural electric cooperatives are bringing high-quality connectivity to an increasing number of small towns where large corporate Internet access companies don't consider population density high enough to justify investment. A few years ago, we reported that Ralls County Electric Cooperative (RCEC) was connecting New London, their hometown. Now, RCEC is expanding their network into nearby Perry.

It Took A While, But It's Coming

In the small town of Perry (pop. 700) in northeastern Missouri, many businesses currently lack the Internet speeds they need to operate successfully. With the current speeds available, as Senior Vice President of HNB Bank Jeff Albus explained, customers at the bank often have to wait while the employees stare “at a spinning wheel on [their] screen.” In order to secure Internet speeds necessary for a future in the digital age, HNB Bank decided to take initiative and work with the town to approach RCEC about expanding their fiber network into Perry.

Efforts began in 2016. At the time, RCEC was deployng their $19 million project aimed at serving rural areas around the town of Perry but not in the city limits. HNB and community leaders floated a petition and the Mayor had signed a letter of support on behalf of the City Council. With only CenturyLink DSL and satellite coverage to choose from, businesses and residents needed more options.

The community is considered the Southern Gateway to the Mark Twain Lake, where more than 2 million tourists come to enjoy summer recreation. As we've learned from places such as Cook County, Minnesota, and Colorado ski communities, such as Estes Park, high-quality Internet access is an expectation that an increasing number of tourists expect no matter where they go to relax.

This Small Missouri Town Wants to Pair Wine With Fiber

People and businesses in the small town of Hermann, Missouri, primarily rely on slow DSL for Internet access. There are also a few areas with cable connections available, and even a few parts of town where no ISPs offer service. This month, community leaders took decisive action to bring another option to town — they adopted a resolution to pursue federal funding for a publicly owned fiber optic network.

Let the People Decide

Late last year, Mayor Robert Koerber proposed a spring non-binding referendum to determine how strongly Hermann voters wanted to invest in the project. At the time, the Board of Alderman were considering a bond issue to cover the cost of deployment, which they estimated at $2.6 million. 

Koerber thought that a strong outcome in support of the project would help attract financing when it was time to begin the project. He also considered the issue something voters should weigh in on, due to the bonding question.

The Board of Alderman supported the idea, but other town matters, including finding a new tourism and economic development director, required immediate attention. Town leaders also decided to look for some one who could help educate the community about the pros and cons of the fiber optic project. Rather than move forward with the referendum town leaders decided in January to put off any vote for the time being.

Pursuing Funding

Prior to their mid-August Board meeting, Alderman in Hermann had the opportunity to meet with representatives from the USDA to discuss other funding possibilities. They determined during those conversations that they could apply for funding from the Rural Utilities Service, which us under the purview of the USDA, for loans to deploy the network. Deadline for their loan application is September 30th.

SEMO Fiber In Southeastern Missouri

For the past seven months, SEMO Electric Cooperative has been working on phase one of construction of a new fiber optic network in southeast Missouri. They recently announced that subscribers are hooked up and taking advantage of Fiber-to-the-Home in rural Scott County and in the towns of Miner, Advance, and Bloomfield.

A Necessity In Society

This is the first of five phases of a $40 million project that the cooperative decided to pursue in 2017. The co-op board saw that providing high-quality Internet access to was filling a demand that incumbents are not meeting, locals want, and assists the community. Homeowners, schools, and local businesses need broadband. Loyd Rice, the administrator of engineering services for SEMO Electric:

“Now we get to build out something that has become a necessity in society. The ability to have a broadband service that is effective now changes the whole quality of life for those folks. It’s definitely a necessity at schools. You can work from home.”

Like other electric cooperatives that have found value in offering broadband service, SEMO has certain advantages in both deployment and operations. Rice noted that they're finding that cost to construct are lower than expected because they’re able to build along existing infrastructure. “And so six seven months into now, we’re probably half to three-fourths the way through our first phase of the actual build,” he told CBS 12 KFVS.

Keeping Locals Updated

As they deploy GoSEMO Fiber, the cooperative provides video updates on its YouTube Channel, the GoSEMO website, and on FaceBook and Twitter. In addition to messages that provide updates on the progress of deployment, staff provides information on equipment. The videos are short and to the point. Here’s the latest, posted on March 11th, 2018:

Incumbent Unmasked As Fake Citizens Group In West Plains, Missouri

In an attempt to negatively influence public opinion, the incumbent cable ISP in West Plains, Missouri, was recently caught masquerading behind a phony citizens group. A real group of locals who support the community’s efforts discovered the astroturf connection and, with no way to deny their involvement, Fidelity Communications tried to rationalize away their subversive tactics to poison the project.

The Needs Of West Plains

About a year ago, we connected with City Administrator Tom Stehn, who described the situation in the south central town of about 12,000 people. Stehn told the story of how in 2015, the city decided to connect its municipal facilities with fiber and how, when word got out about the project, people in the business community approached the city. Even though local businesses could get cable Internet access, rates were up to three times higher than similar services in urban areas. There were also reliability issues that interfered with local commerce.

West Plains had also experienced significant job losses in recent years when several employers left town or closed shop. The city considered a fiber network an economic development tool and a way to keep the local hospital and MSU campus connected with high-quality connectivity. Stehn told Christopher that when new businesses considered moving to West Plains, one of the five questions they always asked was, “What kind of Internet access do you have?” It made good sense to expand the original plan to offer local businesses access to the publicly owned network.

West Plains was offering symmetrical connections to local businesses early in 2017 and had even started offering gigabit service.

The Pilot And The Incumbent

fidelity-web-logo.png The city’s effort to bring better connectivity to a wide range of businesses and residents included a pilot project in West Plains’s Southern Hills district. In the fall of 2017, the city offered gigabit Fiber-to-the-Home (FTTH) connectivity to approximately 80 businesses and 14 residences as a way to work out potential issues and refine their services.

Missourian Reveals Rural Rubs Without Business Broadband

Directly north of Springfield, Missouri, sits Hermitage, a rural community of less than 500 residents. With only a few more than 200 households in Hermitage, it isn’t surprising that none of the big incumbent providers want to install the infrastructure to offer businesses or residents high-quality connectivity. A  recent Missourian article described what it’s like for businesses in a community whose owners need fast, affordable, reliable Internet access when it just isn’t available from the national ISPs.

Failure Expected

In Hermitage, entrepreneurs like local storekeepers cringe on the days when customers want to pay with credit or debit cards. Often their unreliable CenturyLink DSL service fails, sometimes for extended periods, which cuts into their revenue. Cindy Gilmore, who owns a local convenience store, has to either track down customers or take a loss when Internet access fails during mid-transaction and she restarts her modem.

Gilmore pays $89 per month to CenturyLink for service that is advertised as “up to” 1.5 Megabits per second (Mbps) download. Her speed test result on November 12th was .5 Mbps. Two weeks later a similar test reached the advertised speed and then two days later fell to .4 Mbps, which eliminated her ability to process credit card transactions, work from the office, or look up information she needed for supplies.

Rufus Harris works from home as an online car dealer and relies heavily on Internet access. As part of his work, he researches auto recalls and Carfax reports. The only option for Harris at his home office is CenturyLink and he pays $39 per month for residential “up to” 1.5 Mbps Internet access. He often finds himself, however, renting motel rooms for up to $400 per month because his Internet service at home goes down.

“It’s a shame when you pay for a service that you don’t receive,” Harris said. “We’re supposed to get at least 1.5 (Mbps) or up to, and most of the time it’s not near that good. A lot of the time, it might take 2 minutes to change from one page to the next.”

No Co-ops Yet

Callaway Electric Co-op Marching On In Missouri

Central Missouri’s Callaway Electric Cooperative began offering high-quality Internet access in 2016 by collaborating with a local telephone cooperative. Since then, it’s subsidiary, Callabyte Technology, has continued to expand its services to members in local rural communities in its service area. Recently, the people of the small community of Holts Summit learned that the project is headed their way.

Anticipating Better Broadband

Holts Summit residents and businesses can expect to receive the opportunity to sign up for Callabyte services in 2018. Business development supervisor for the cooperative, Rob Barnes told attendees at a recent Alderman meeting that the co-op would likely divide the deployment into three phases due to the size of the town. Holts Summit is about 3.5 square miles and home to 3,700 people.

The community of Holts Summit obtains electric service from Ameren Missouri, rather than Callaway Electric; Holts Summit and the cooperative are developing a non-exclusive franchise agreement just as they would a private sector provider that wished to offer video services in Missouri. Businesses and residents in the town currently use satellite Internet service and cable Internet access from Mediacom.

"We've got a number of citizens that would like to start a home-based business, but won't because they don't have reliable internet right now," [City Administrator Rick] Hess said. "So this will be great for businesses."

Ever Growing Service From Co-ops

Calloway Electric Cooperative has been reaching an expanding list of communities and intends to provide service all of Calloway County. They offer Internet access, voice, and video bundles and people in their service area are signing up for all three.

“We are still surprised that the landline service is something people still are taking,” Barnes said. “But as you get out into the rural portions of Callaway County, cellphone service still doesn’t work very well.”